MUSD may borrow funds to cover gaps in 2nd high school

 

Trying to close the gap between necessities and budget realities, Maricopa Unified School District is pondering a 15-year loan to help  pay for a second high school.

Superintendent Tracey Lopeman, Ed.D., pointed out the discrepancies between the School Facilities Board’s minimum requirements, what the SFB is paying for, and MUSD’s standards. The MUSD Governing Board met Wednesday to discuss the issues again.

SFB allocated MUSD a little over $26 million in 2018. The district has three years from the allocation date to start the project, which was compelled by serious overcrowding at Maricopa High School.

From the $26 million, $3.7 million was for land purchase. The district is still in the process of purchasing property at the southwest corner of Murphy and Farrell roads, acres that are currently pecan groves.

Of the remaining $22.4 million, 20% is for soft costs (fees) and contingency expenses, Lopeman said. That leaves $18.5 million for the school.

With that amount, SFB requires MUSD to build a high school with a minimum of 125,000 square feet  to accommodate 1,300 students.

“This allocation requires us to make serious compromises where quality, long-term plans and functionality and aesthetics are concerned,” Lopeman said. “In light of the board’s decision to wait on a bond, it is imperative that the board has complete clarity around the gap between the SFB minimum standards, what the SFB allocation will cover, and the design and construction of a high school that will make the community proud.”

Business director Jacob Harmon told the board the difference between what can be built with $18.5 million and what is considered minimum standards is about $3 million. If the district, which does not have a bond, gets a 15-year loan for $3 million at 2.75% interest, he said, the annual cost would be $260,000.

Asked for his personal recommendation by board member Ben Owens, Harmon said a $5 million loan would allow the school to exceed the district’s minimum standards and improve technology. That loan would cost the district an estimated $425,000 annually.

What could be built for $18.5 million would not meet the SFB’s minimum standards, Harmon said. If the district gets a loan and later succeeds in passing a bond, he said, it could use the bond to pay off the loan.

The $3 million difference between unacceptable and minimum standards would permit masonry and metal instead of wood and stucco, a 34-foot gym height instead of 22 feet, and furnishings, fixtures and equipment for the cafeteria food service instead of a dining experience limited to outdoors.

Lopeman said the board had to be comfortable with owning the decisions “for the next five to 40 years.”

She said Maricopa High School expects an increase of 100 students this coming year. The district has already invested  $2 million in portable classrooms to lessen possible crowding, so Lopeman said they are prepared to accommodate those additional students.